US subsidiary of EU Crypto Exchange Bitstamp seals Bitlicense from New York Regulator

3 min read

The US subsidiary of the largest European crypto exchange Bitstamp has received a virtual currency license from the financial regulator of the state of New York, according to an official press release from the New York Department of Financial Services (NYDFS) on April 9.

The license, known as a BitLicense, has been granted by the NYDFS to Bitstamp USA Inc., a subsidiary of the Luxembourg registered office.

According to the press release, the development means that Bitstamp USA is reportedly the nineteenth company to receive the green light from the department to perform digital currency operations in the state of New York. As Reuters reports today, Bitstamp Europe SA was licensed in 2016 for a payment institution that approved its activities in all 28 EU countries.

Specifically, the Bitstamp license will authorize to perform services that allow customers to buy and sell Bitcoin (BTC), as well as selected, but not specified, other virtual currencies for USD and vice versa.

Bitstamp USA also has a license to "make it possible to transfer money to the Ripple network, issue Ripple Balances in USD, other virtual currencies, and select fiat currencies, including the Australian Dollar, British Pound, Euro, Swiss Franc and Japanese Yen. "

The NYDFS statement states that the licensing regime is designed to oversee and promote virtual currency exchange under the New York Financial Services Act.

In securing the license, Bitstamp joins other high-profile crypto industry companies such as Square, BitPay, Genesis Global Trading, bitFlyer USA, Coinbase, XRP II and Circle Internet Financial.

The assessment process for the Bitlicense includes a thorough investigation of a company's anti-money laundering (AML) and Know Your Customer (KYC) compliance as well as anti-fraud, capitalization and cyber security policies.

Not all industry members have embraced the state's demanding regulatory regime, which has been in force since 2015. US Crypto Exchange Kraken stopped that year to provide services to NY residents, and called the state's strict BitLicense "a creature so dirty, so cruel that even Kraken does not possess the courage or strength for its nasty, large, pointed teeth to face. & # 39;

As reported, as a result of global expansion, Bitstamp was taken over by the Belgian investment company NXMH – which in turn is owned by the South Korean media conglomerate NXC Corp – in October 2018. In January the exchange was concluded with the large Swiss online bank Dukascopy.

To save time, Bitstamp is globally ranked as the 47th largest stock market by corrected daily traded volume, with sales of around $ 105.6 million during the 24-hour printing time.

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Don Bradman

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